Ethereum
Ethereum Rebounds as Investors Start Accumulation Trend: Here’s What to Expect Next
Ethereum price is strengthening as it previously struggled to attract buyers near key resistance levels. The ETH ETF sector is seeing positive net flow, leading to a strong push towards the psychological $4,000 mark. Analysts predict a significant bullish trend if ETF inflows continue to increase. Additionally, various on-chain metrics have recently improved, strengthening the likelihood of a breakout above $4,000.
Investors begin their accumulation trend
Ethereum price is experiencing a slight positive trend; However, traders on both sides continue to validate a clear trend. According to Coinglass data, the ETH price saw a total liquidation of almost $22 million, of which sellers liquidated approximately $12.5 million in short positions.
According to JP Morgan, spot ether ETFs are unlikely to see the same influx of funds as spot bitcoin ETFs saw when they launched. BlackRock and Fidelity products in the Bitcoin category set records by amassing $10 billion in assets under management in just a few weeks.
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JPMorgan analysts believe that demand for Ethereum spot ETFs will be significantly lower than that of Bitcoin. They provided several reasons why they believe spot ether ETFs will not match the performance of bitcoin ETFs.
A key factor, analysts noted, is bitcoin’s “first-mover advantage,” which allowed it to capture much of the market’s interest in crypto assets following the approval of spot bitcoin ETFs. This could negatively impact the price of ETH if it fails to attract the required institutional interest.
Data from IntoTheBlock indicates a trend of increasing accumulation among holders. The Netflow metric for Ethereum fell below signal and in the last 48 hours, around 63,000 Ethereum was removed from exchanges.
This indicates a decrease in exchange reserves and shows that holders are holding on to their ETH as the Ethereum price recovers. The growing accumulation trend portends a bullish outlook for Ethereum prices as fewer coins are available for sale.
What’s next for the ETH price?
Ether faced resistance at $3,849, indicating that sellers are actively defending the $4,000 to $4,100 range. However, buyers continue to maintain momentum by defending the price above the crucial $3,700 level. At the time of writing, the ETH price is trading at $3,755, down over 0.76% in the last 24 hours.
Initial support lies at the $3,730 level. If the bulls convert this into a support zone, the ETH/USDT pair could attempt a fresh breakout above the $4,000 barrier. Overcoming this issue could lead the pair towards a potential rally to $4,100 – $4,500.
However, if the price continues to decline and falls below $3,730, it suggests a resurgence of bearish momentum. Following this, the pair could fall below the immediate Fib lines, resulting in a retest of the $3,615 level.